The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils:

Sales $449,330

Gross profit 261,960

Cost of goods manufactured 224,670

Indirect labor 97,500

Factory depreciation 14,830

Materials purchased 138,390

Total manufacturing costs for the period 258,360

Materials inventory, ending 18,420

Using the information given, determine the following missing amounts:

a. Cost of goods sold

b. Finished goods inventory at the end of the month

c. Direct materials cost

d. Direct labor cost

e. Work in process inventory at the end of the month

COGS = 187,370‬

ending finished goods = 37,300

Direct Materials used = 119,970

Labor = 26,070

ending WIP = 33,690

Explanation:

Gross Profit = Sales - COGS

449,330 - 261,960 = COGS = 187,370‬

Cost of goods manufactured 224,670

less Cost of Goods Sold of (187,370)

ending finished goods 37,300

Materials purchased 138,390

Materials inventory, ending (18,420)

Direct Materials used 119,970

Materials + Labor + Overhead = COGM

119,970 + Labor + 97,500 + 14,820 = 258,360

Labor = 258,360 - 232,290

Labor = 26,070

Then Cost added less Cost of Goods Manufacured = ending WIP

258,360 - 224,670 = 33,690

COGS = 187,370‬

ending finished goods = 37,300

Direct Materials used = 119,970

Labor = 26,070

ending WIP = 33,690

Explanation:

Sales - COGS = gross Profit

449,330 - COGS = 261,960

449,330 - 261,960 = COGS = 187,370‬

Cost of goods manufactured 224,670

less Cost of Goods Sold of (187,370)

ending finished goods 37,300

Materials purchased 138,390

Materials inventory, ending (18,420)

Direct Materials used 119,970

Materials + Labor + Overhead = COGM

119,970 + Labor + 97,500 + 14,820 = 258,360

Labor = 258,360 - 232,290

Labor = 26,070

Then Cost added less Cost of Goods Manufacured = ending WIP

258,360 - 224,670 = 33,690